Loans, Repayments, and Amortisation
Ages 16–18Difficulty adapts to you
Loans, Repayments, and Amortisation
A loan is borrowed principal that must be repaid under agreed terms. Compare offers using total repayment, not only the monthly instalment. A longer term can reduce each instalment while increasing total interest.
Your goals
- ✓You can compare borrowing options using deposits, interest, instalments, and total repayment.
- ✓You can use Loans, Repayments, and Amortisation, model correctly.
- ✓You can use the definitions, units, assumptions, and examples to check your answer.
Words to know
- Loans, Repayments, and Amortisation:
- Compare borrowing options using deposits, interest, instalments, and total repayment.
- model:
- A rule or representation used to describe a situation and make a prediction.
Examples
- 1Borrowing ₦600,000 and repaying ₦75,000 for 10 months means total repayment ₦750,000 and total finance cost ₦150,000.
- 2A ₦20,000 monthly payment for 24 months is ₦480,000 in total before any separate fees.
Check these
- • Do not skip the meaning of a term or give a result without explaining what it means.
- • Keep every number, symbol, label, and unit in its correct place.
- • Show enough working to check how you reached your answer.
Helpful habits
- • Read the whole question before choosing what to do.
- • Show one clear step at a time and check each step.
- • If you are stuck, draw a model, try smaller numbers, or revisit the example.
Now try your own
Create your own loans, repayments, and amortisation example, solve it, and explain how you checked it.
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Helpful Hints“If you are stuck, skip and come back later.”